Clemente inc. incurs the following costs to produce 10,000 units of a subcomponent:

direct materials
$8,400

direct labor
11,250

variable overhead
12,600

fixed overhead
16,200

an outside supplier has offered to sell clemente the subcomponent for $2.85 a unit.

reference: ref 7-2

if clemente accepts the offer, by how much will net income increase (decrease)?

select one:

a. $3,750

b. $19,950

c. $(8,850)

d. $(2,850)

The fiscal 2016 financial statements of nike inc. shows average net operating assets (noa) of $8,450 million, average net nonoperating obligations (nno) of $(4,033) million, average total liabilities of $9,014 million, and average equity of $12,483 million. the company's 2016 financial leverage (flev) is: select one: a. (0.477) b. (0.559 c. (0.323) d. (0.447) e. there is not enough information to determine the ratio.

If a product goes up in price, and the demand for it drops, that product's demand is a. elastic b. inelastic c. stable d. fixed select the best answer from the choices provided

Quick computing currently sells 12 million computer chips each year at a price of $19 per chip. it is about to introduce a new chip, and it forecasts annual sales of 22 million of these improved chips at a price of $24 each. however, demand for the old chip will decrease, and sales of the old chip are expected to fall to 6 million per year. the old chips cost $10 each to manufacture, and the new ones will cost $14 each. what is the proper cash flow to use to evaluate the present value of the introduction of the new chip? (enter your answer in millions.)